Safe-Harbor-Statement - UNIWHEELS€¦ · and business conditions, ... services or technologies and changes ... A5, A6, A7, A8, Q2, Q3, Q7, i3 BMW-Group BMW 13 years 1-series, M5/M6-series,

1

22

Safe-Harbor-Statement

UNIWHEELS GROUP INVESTOR PRESENTATION

This presentation includes forward-looking statements based on the beliefs of UNIWHEELS

AG management. Such statements reflect current views of UNIWHEELS AG with respect to

future events and results and are subject to risks and uncertainties. Actual results may vary

materially from those projected here, due to factors including changes in general economic

and business conditions, changes in currency exchange, the introduction of competing

products, lack of market acceptance of new products, services or technologies and changes

in business strategy. UHIWHEELS AG does not intend or assume any obligation to update

these forward-looking statements.

This presentation constitutes neither an offer nor recommendation to subscribe or buy in any

other way securities of UNIWHEELS AG or any of the companies that are members of the

Group at present or in the future, nor does it form part of such an offer and it should not be

understood as such. This presentation does not constitute an offer of sale of securities in the

United States of America. Securities may not be offered or sold in the United States of

America without registration or exemption from registration in accordance with the U.S.

Securities‘ Act of 1933 in its currently valid form.

3

01 UNIWHEELS AT A GLANCE

02 THE BUSINESS

03 FY 2016 UPDATE

04 FINANCIALS 12-16

05 APPENDIX

UNIWHEELS Group Investor Presentation

AGENDA

4

UNIWHEELS AT A GLANCE


01

55

Key Investment Highlights


Premium OEM focus in Automotive provides access to global markets and emerging economies, a

balanced customer base and less exposure to market volatility.

Accessory: Excellent market position with four major brands that address all market segments. Well-

established for decades in motor sport.

Quality leadership and operational excellence: Added value for customers thanks to high-end

technologies such as wheel diameters, light-weight solutions and sophisticated surface treatments.

Maximum efficiency in the production process

Solid financial track record 2012 to 2016: EBITDA tripled and net profit up fivefold. Net debt at a factor

of just 0.6 of EBITDA despite capex programme. Strategy 2022: A programme with ambitious financial

goals

One of Europe’s leading alloy wheel suppliers and long term successful track record with long-standing

customer relationships

Solid market growth: Rising demand from OEMs, increasing automobile production and a higher share

of lightweight alloy wheels could lead to capacity shortages in the near future

Shareholder orientation: transparency in financial reporting and proactive IR


3

4

5

6

1

2

7

66

Historic and future growth


Acquisition of

RIAL

Leichtmetallfel

gen GmbH

by Ralf

Schmid

founded 1978

ALUTEC /

RIAL starts

first OEM-

supply

to VW / Votex

Foundation of

corporate

group

UNIWHEELS

United Wheels

Group

Foundation of

ALUTEC

Leichtmetallfel

gen GmbH

by Ralf

Schmid

Construction

of new

ALUTEC/RIAL

Production

Plant

Stalowa Wola,

Poland

Expansion of

production

capacities/

start up of new

painting

facility

in polish plant

Start of new

large Painting

Line in Polish

plant

New Central

Logistic

Centre for

Accessory

Division

Launch of new

alloy-

lightweight

technology

LightForming

Launch of new

FlowForming

line in German

plant

Acquisition of

European

Business of

ATS

with

production

units in

Germany and

Poland

founded 1969

1996 2000 2003 - 2004 20081998 2001 2005 2012

UNIWHEELS

Holding

(Germany)

GmbH is

converted into

the

stock company

UNIWHEELS

AG

20142009-2012

UNIWHEELS

AG

conducts IPO

and is listed

on Warsaw

Stock

Exchange

2015

UNIWHEELS historic sales volume development


Revenue Split 2016 [%]

Σ 8,76

77

Business model – supplier to OEMs and Aftermarket


Automotive Business Accessory Business

Brands

Business Model

Group revenues

split per region

One of the leading suppliers of alloy wheels to major

European car manufacturers (OEM)

Wheels are produced with low-pressure die casting

technology, test criteria according to OEM standards met

without fail -> positioned as quality and innovation leader.

Strong and long-established relations with OEMs such

as Audi, BMW / MINI, Mercedes / AMG, Jaguar-Land Rover

and Volvo.

Premium: strong emphasis on premium segment. Direct

distribution via key account management to OEMs as Tier-1

supplier, mainly in the premium segment.

The market-leading manufacturer of alloy wheels for the

accessories market (AM) in Europe

Four brands: ATS, RIAL, ALUTEC and ANZIO, covering

different customer groups from premium to economy

Distribution channel via own trading companies to major

tire and wheel distributors, retailers as well as leading car

dealers, and UNIWHEELS B2B Webshop


88

Sales structure


Revenue [EUR m]Number of wheels sold [m units]

+11.6%

+3.7%+7.8%

+14.1%

-1.5%

+10,6% +23.6%

+7.3%


Σ 8,76

-11.7%

+12.1%

+6.3%

+5.9%

9

STRATEGY 2022 PROFITABLE AND SUSTAINABLE GROWTH

OPERATIONAL EXCELLENCE AND PROCESS INNOVATION

A TEAM-ORIENTED CORPORATE CULTURE FOSTERING INNOVATION

EXCELLENT PRODUCT QUALITY AND INNOVATION

COST EFFICIENCY AND SOLID FINANCIAL POSITION

TECHNOLOGYLEADERSHIP

≥ 700mSALES

>15 %EBITDA

>10 %EBIT

>20 %ROCE

< 2.0xNet debt / EBITDA


More on Strategy 2022 on www.uniwheels.com -> Investor Relations -> UNIWHEELS Profile -> Strategy 2022:

http://www.uniwheels.com/uwag/en/home/investor-relations/uniwheels-profile/strategy2022/


http://www.uniwheels.com/

1010

UNWHEELS AG Executive Board


Dr. Thomas Buchholz

CEO

At UNIWHEELS since: 2015

Areas of responsibility :

• Strategy & Growth

• Automotive/OEM

• Group Technology

• Group Human Resources

• Quality Management

Dr. Karsten Obenaus

CFO



• Finance/Accounting/Taxes

• Controlling

• Investor Relations

• Legal

• Compliance

• Sustainability

• Risk Management

• Purchasing

• IT


Dr. Wolfgang Hiller

COO



• Group Operations

• Group Industrial Engineering

• Accessory/Aftermarket

• Group Marketing & E-Commerce

• Motorsports

• Environmental Management

1111

Tender Offer by Superior: Transaction Summarized


Superior Industries International AG launched a tender offer to acquire 100% of the Company´s shares

(including the shares held by UHM). Offer period starts as soon as the regulatory approvals are

received.

The Executive Board has been notified today by its major shareholder UNIWHEELS Holding (Malta)

Ltd. ("UHM") that UHM has entered into an irrevocable undertaking with Superior Industries

International, Inc. ("Superior") to sell all its shares in the Company (representing approximately 61.29%

of the current outstanding share capital of the Company) to Superior Industries International AG, a

wholly-owned subsidiary of Superior.

Superior offered a cash consideration of 236,07 PLN per share in the tender offer, equivalent to the 3-

Months VWAP of the Company's shares prior to the announcement of the tender offer.


1212

Tender Offer by Superior: Strategic Rationale - Global No. 2


Transaction creates one of the largest light vehicle OEM aluminum wheel manufacturer in

the world by combining the #1 North American and #3 European suppliers with nine

manufacturing facilities across Germany, Poland, Mexico and U.S..

Positions the combined company as a leading global partner to automotive OEMs located

in both North America and Europe

Adds UNIWHEELS’s leading European manufacturer of aftermarket aluminum wheels with

top brands, including ATS, RIAL, ALUTEC and ANZIO. The trademark rights of these high-

value brands remain with company.


1313

Tender Offer by Superior: Highly Complementary

Businesses


Significant opportunities to win new business across customers by leveraging globally

competitive manufacturing capacity, and highly complementary product technology and

manufacturing process expertise.

Bolsters combined company’s human capital by integrating two highly skilled organizations –

UNIWHEELS’s focus in Germany and Poland and Sapphire’s operations in the U.S. and Mexico.

With no manufacturing overlap, the combined business will require minimal restructuring actions

while creating synergy opportunities and value creation for all stakeholders

Highly complementary customers, R&D and engineering capabilities create global scale,

positioning the combined business for profitable and sustainable growth.


14

THE BUSINESS


02

1515

Automotive: diversified and long term relationships


02 THE BUSINESS

Group BrandRelation-

shipMain models supplied

Audi Audi 20 years A3, A4, A5, A6, A7, A8, Q2, Q3, Q7, i3

BMW-Group BMW 13 years 1-series, M5/M6-series, X3, X6

Mini 5 years One, Clubman, Countryman

Ford Ford 34 years Kuga, S-Max

Honda Honda 7 years Civic, CR-V

JLR-Group Jaguar 15 years XJ, XKR, XF, XK, F-Type, F-Pace

Land

Rover

10 years Evoque, Range Rover

Mercedes-

Group

Mercedes 35 years S-class, CLS / CLS shooting break, SL,

E-class, C-class, A/B-class, GLA, GLK

AMG 30 years C-class, SL-class, SLK-class, G-class

Mitsubishi Mitsubishi 10 years Outlander, Colt

Nissan Nissan 4 years Qashquai, Juke

Opel Opel 30 years Corsa, Astra, Insignia

Porsche Porsche 44 years 911, Macan, Panamera, Cayman, Cayenne

PSA PSA 14 years DS 5, C4 Picasso, Cactus, 308, 508, 3008

Smart Smart 12 years ForTwo

Suzuki Suzuki 1 year SX4

Volvo Volvo 38 years V40, S/V/XC 60, S/V/XC 90

VW-Group VW 23 years Amarok, Golf, Polo, Passat CC, Touareg

Bentley 13 years Continental

Seat 12 years Leon, Alhambra

Skoda 13 years Octavia, Superb

OEM sales 2016 [% of revenues]

OEM segments – focus on premium [% of

revenues]

21%

21%

17%

10%

9%

8%

6%8%

Mercedes/AMG

Audi

Volvo

VW/Skoda

Jaguar/LandRover

BMW/Mini

PSA

Others

1616

Mechanism of price adjustments with OEMs

02 THE BUSINESS

•Our contracts with customers include clauses which protect us from losses due to aluminum prices changes to a large extent, including fluctuations in EUR/USD.

•Price adjustments take place quartely based of the average aluminium prices in the previous three months. See graph below.

Aluminium (LME)

•Indicated at Metal Bulletin Index (MBI)

•Includes insurance, transport from producer to port warehouse

•Increasingly, price adjustments quarterly, same pattern as for LMEAlloy Premium (MBI)

•Negotiated directly with customers 1x per year

•Includes specific alloy and transport from warehouse to our plantsProduct Premium

Dec Jan Feb Mar Apr May Jun

Example quarterly LME and MBI adjustment scheme

New alloy

compo-

nent in

wheel

price for

the next

quarter

Average

LME

price

previous

three

months

Quartely

price

adjust-

ment with

OEMs


1717

02 THE BUSINESS

Automotive: project phases of an OEM wheel

RFQ Nomination SOP EOP

3-6 months after request for quotation (RFQ) from customers, wheel producer is nominated or not.During this phase, cost calculations and price negotiations take place.

At nomination, value-add prices, material costs and life-time reductions (long-term productivity) arefinalised.

From nomination to start of production (SOP), the wheel is developed and simulated (based onOEM´s specifications), mould is constructed and 0-series is tested: this takes 1.5-2.0 years

Usually, the wheel life cycle is half a car model´s life: most wheels will be replaced after facelift

The price effect of new wheels on our revenues comes with a time lag of 2-2.5 years.

Comment

Example model of project phases of an OEM wheel


1818

02 THE BUSINESS

Automotive: revenues are based on a project portfolio

New project 3

Project 2

Project 1

New project 2

Project 1

New project 1 New project 4

Project 3

Project 2

Project 1

Initial

PortfolioInitial

Portfolio Initial

PortfolioInit. Portfolio

Year 1 Year 2 Year 3 Year 4 Year 5

Our wheel portfolio consists of wheels in different project phases.

Portfolio is constantly changing as projects (with price adjustments) areending are replaced by new projects that did not have reductions yet.

80% of the portfolio is exchanged over a period of 4-5 years.

This secures our OEM wheel prices.

“Price pressures” would have a lagged effect coming in phases.

Comment

Exemplary model of the project portfolio development over years

OEM revenues are

a product of a

portfolio of wheels

in different project

phases

Initial

Portfolio


1919

Accessory: leadership in the market with 4 strong brands


02 THE BUSINESS

complimentary business cycle with OEM market (2010 as an

example, weak OEM market, much above average

aftermarket)

relatively stable market

on-going market consolidation (smaller players expected to

disappear from the market within the next years)

main consumer decision drivers

- price

- design

- logistics (24 hours delivery)

USD development makes imports from Asia unattractive

12,5

11,912

13,3

11,511,6

11,711,5 11,5 11,5

11,6 11,6

2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016* 2017* 2018*

Number of wheels in aftermarket [in m]

Our four Accessory brands

Volume of wheels in the EU aftermarket [in m]

*

Complimentary market cycle to OEM business

UNIWHEELS is the leading manufacturer in the European

aftermarket with four well known brands covering wide

range of segments (premium to entry): RIAL, ALUTEC,

ANZIO and ATS

UNIWHEELS portfolio consists of top market brand

*forecast

2020

ATS exclusive supplier to DTM racing series

02 THE BUSINESS

Comment

From 2017, all DTM touring cars (Audi, BMW,Mercedes) will take the starting line with the newATS forged wheel.

The contract will run for at least three years.

Aluminum forged wheels made of a high-strengthspecial alloy.

UNIWHEELS now a partner to the world's besttouring car racing series.

We are very proud to be the DTM exclusivesupplier.

Excellent field of demonstration of the technicalexpertise of ATS and the entire UNIWHEELSGroup.


2121

Core competencies: 3 factors driving value added per wheel

Not only volumes drive our revenues.

We master three additional key characteristics that lead to higher value added:

Wheel Size

Complex

Surfaces

Lightweight

Technologies

1

2

3

75 % of our wheels are

delivered in diameters of

17″-20″ - with a rising

trend

Design and quality

requirements and the

trend to indivudalized car

configurations

Consumer and regualatory

trends towards lower CO2

emissions require weight

reductions

Wheels with up to

23″, e.g. for SUVs

High-gloss paint

Diamond Cut

Anti Corrosion

Finish

Flow Forming

Undercut


02 THE BUSINESS

2222

Production and process excellence


02 THE BUSINESS

Low-pressure

casting

Machining Varnishing

& Painting

Aluminium Final Check

& Delivery

Spectral

analysis

Melting /

Furnace

Degasing

Feedstock of primary

alloys from renowned

suppliers only

Batches of incoming

goods are scanned

assuring backtracking

Materials are spectral

tested guaranteeing

highest quality

Casting

X-Ray

Heat

treatment

Use of low pressure die

casting technology

Castings are tested in

full detail by fully

automated X-Ray

Additional tempering via

heat treatment machines

Machining

Quality-

check of

dimensions

Degreasing

CNC-machining of the

wheels and checks of

dimensions and quality

Wheels are 100%

checked for balancing

Degreasing as

preparation for later

varnishing

Preparation

Robotic

transfer

station

Painting

and clear

coat

process

“Chrome free”

preparation of the

wheels

Fully automated

varnishing and painting

Clear coat finishing

Final check

Packaging

Delivery

Optical check before

packing

Packing on exchange

OE-paletts and in boxes

Central location assures

24h-72h delivery in

whole Europe

2 3 4 5

aluminium price passed-through to OEM customers on the basis of long-term arrangements and short term price adjustments

regarding market premium over commodity prices (OEM) or hedged (aftermarket)

Construction

& design

design

Simulation

tool

construction

Wheel development

based on the customers'

specifications or own

design

Simulation and analysis

of wheel and tool

construction

Tool construction and

manufacturing

61

2323

Production companies, plants and capacities


02 THE BUSINESS

Stalowa Wola, PL Werdohl, D

Plant name UPP 1 UPP 2 UPP 3 (new) UPG

Capacity Max 2.2m

wheels

Max 4.7m

wheels

Max 2.0 m Max 1.8m wheels

Wheel

dimensions

14‘‘-21” 14“-20“ 14”-23” 17“-21“

Employees 2,633 418

Strengths Labor cost efficiency combined with automated

and flexible robot cells for machining

Tax shield due to location in special economic

zone

New planned plant: most advanced

manufacturing facility with latest technology

The already world's largest contiguous

production site for light-alloy wheels has been

extended by another approx. 2 million wheels.

Highly skilled for

large wheels and

complex surfaces

Innovation:

closeness to

R&D used to

introduce and

optimize new

production

technologies

UPG UPP

HQ,

logistic

center

Werdohl

Bad Durkheim

Stalowa Wola

Plants and distribution companies

Source of the wheels sold (mn pieces)

Plant 4 Capex and Capacity Schedule 2015 2016 2017 2018

Incremental capacity Plant 4 [wheels m

/year]0.5 0.7+0.8

Estimated total capacity Plant 4 [wheels m

/year]0.0 0.5 2.0 2.0

Estimated total capacity group [wheels m

/year]7.2-8.0 7.7-8.5 9.2-10.0 9.2-10.0

Capacity vs. 2015 production of 7.8m

wheels [%]+10.3% +25.6% +25.6%

Σ 8,76

2424

New plant is online with second phase

02 THE BUSINESS

Incremental capacity [wheels m /year]

• One year earlier than promised at IPO, the

second and final phase of UPP 3.

• It is the 3rd plant in Stalowa Wola, and the 4th

plant in the group.

• The already world's largest contiguous

production site for light-alloy wheels is now

extended by another approx. 2 million

wheels.

Update

Stalowa Wola, Poland

5 melting furnances

24 casting machines

3 x-ray facilities

2 heat treatment facilities

11 robot cells for machining

12 deburring plants for finishing

Pad Printing

1 painting line of the latest technology

Land size: 36.774 m²

Buildings: 31.182 m²

201820172016

AUG 2016

1st Phase

1.2m wheels p.a

2018

2nd Phase

2.0m wheels p.a

Phase 2 of UPP 3 brought forward by 1 year

2016 2017 2018 Total

0.5 0.7+0.8 0.0 2.0


2525

Successful stock listing at WSE since May 2015

02 THE BUSINESS

• Substantial over-subscription at the issue price of PLN 105

• Almost all investors seen during roadshow subscribed

• Balanced allotment to OFEs, TFIs, international funds and private investors

• Being public means professionalization and an organization ready for further growth.

• sWIG 80 inclusion in September 2015, mWIG40 ascension in March 2016

• Several awards regarding IPO, Reporting and Being Public

61.3%

38.7%

31.5%

39.5%23.6%

5.0%

0.3%


Current shareholder structure Free Float as of allotment on April 29th 2015

26

FY 2016 UPDATE


03

2727

Highlights FY 2016: fourth record year in a row

03 FY 2016 UPDATE

Sales

EBITDA

Margins

Another

Success

Year

Outlook

FY 2017

Strong volume growth 2016: +12.0% to 8.8 million wheels. New capacity contributes

fully now. Demand growth from OEM and AM customers.

Revenues up by 6.3 %: higher value added and aluminium price adjustments.

Strong aluminium impact in Q2 balances out:

EBITDA margin improves to 15.1% from 13.4% in FY 2015.

EBIT margin improves to 11.2% from 10.1 % in FY 2015.

Construction of new plant in Poland accelerated, completion ahead of schedule.

Record levels in terms of sales volumes, revenues and earnings and guidance

exceeded. Low leverage of 0.6x despite capex programme. Strategy 2022 established.

Dividend proposal raised to EUR 2.00 (+21.2%) per share, a yield of over 4 %.

Disproportionately high earnings growth despite ramp-up costs for new plant UPP 3.

Drop in material costs by 2.4%.

EBITDA grows by 19.6% to EUR 70.2 million in 2016.

Sales volume growth of 10-15%.

Revenue growth of 14-19%.

EBITDA growth of 15-20%.


2828

Automotive: demand growth and enhanced customer base

03 FY 2016 UPDATE

Automotive wheels sold [million]

+12.1%

7.186.41

Automotive revenues [EUR m]

+5.9%

371.5350.8

Comment

Ongoing demand growth from European

OEM customers.

Availability of additional capacity in new

plant and operational performance

increases.

Enhancement and diversification of

premium-focused OEM customer base.

Automotive wheel sales grow by 12.1%.

Value-added sales increased by bigger

diameters (higher share of >19’ wheels)

and more complex wheels.

Sales growth influenced by lower

aluminium price components: revenue

growth of +5.9%.


2929

Automotive revenue bridge: higher value added

03 FY 2016 UPDATE

Automotive revenue bridge [EUR m] Comment

Value –Added

219.3Value –Added

192.3

Aluminium

Surcharges

158.5

Aluminium

Surcharges

152.2

Aluminium Surcharges: price

component that is quarterly

adjusted with OEM customers

based on previous LME

development.

Aluminium Surcharges decreased

by EUR 6.3m based on lower LME

in full 2016.

Value Added: component of wheel

price that is fixed at nomination,

depending on product mix (size,

lightweight, complex surface).

Product mix lead to a positive Value

added effect of EUR 3.8m.

Value-added revenues increased by

14.0%.

350.8

23.23.8

6.3

371.5


3030

Accessory: exports as strong growth contributor

03 FY 2016 UPDATE

Accesory revenues [EUR m]

+6.3%

84.879.8

Accessory wheels sold [million]

+11.7%

1.581.42

Comment

Continuation of successful sales

activities in a challenging market,

expansion of export markets

New products and applications

successfully placed.

Accessory wheel sales up by 11.7%.

Sales increase for all brands, especially

in premium segment.

Accessory revenues grow by 6.3%.

Decision of EU Commission to retain

Anti-dumping duty by five years.


3131

Group P&L: new plant, aluminium price adjustments and

margins improvement

24. Mai 2017

03 FY 2016 UPDATE

Key margins FY 2016 FY 2015 Change pp

EBITDA margin 15.1% 13.4% +1.7

EBIT margin 11.2% 10.1% +1.1

Consolidated P&L of UNIWHEELS Group Comment

in EUR mFY 2016 FY 2015 %Change Q4 2016 Q4 2015 %Change

Revenue 464.1 436.5 +6.3 129.2 116.3 11.1

Changes in inventories and work

in progress -4.3 1.4 -6.6 -6.2

Own work capitalized 1.3 0.6 0.8 0.1

Total operating performance 461.1 438.5 +5.2 123.4 110.2 +12.0

Other operating income 3.9 4.6 2.1 1.3

Cost of material 256.0 262.4 -2.4 67.9 62.8 +8.1

Personnel expenses 76.0 66.0 +15.2 20.9 17.3 +20.8

Other operating expenses 62.8 56.0 +12.1 18.0 14.3 +25.9

EBITDA 70.2 58.7 +19.6 18.7 17.1 +9.4

Depreciation, amortization and

impairments 18.1 14.8 +22.3 5.9 3.8 +55.3

EBIT 52.1 43.9 +18.7 12.8 13.3 -3.8

Interest income 0.2 0.5 0.0 0.0

Interest expense 3.1 4.4 -29.5 1.0 0.7 42.9

Other finance revenue/costs 1.3 0.7 -0.7 0.0

Profit or loss before tax 50.5 40.7 +24.1 11.1 12.6 -11.9

Income taxes -13.6 0.0 -10.2 0.2

Net profit or loss 64.1 40.7 +57.5 21.3 12.8 +66.4

Revenues increased by 6.3%, influenced by:

Wheels sales increase of 12.0%

Product mix with higher value added

Aluminium price adjustments

Material Costs drop by -2.4%, reflecting lowerLME alumium prices

Personnel costs impacted by recruitments for newplant, ramp-up costs and wage increases:+15.2%

EBITDA increased by 19.6% to EUR 70.2m.

Depreciation up by 22.3 % due to PPE in newplant.

EBIT up by 18.7% to EUR 52.1m.

Net profit +57.5%: includes income fromcapitalized deferred taxes

EBITDA and EBIT margins improved


3232

P&L: material costs impacted by LME, personnel expenses by

recruitments for new plant

03 FY 2016 UPDATE

Personnel expenses [EUR m]

Cost of material [EUR m]

Cost of material is influenced by lower LMEaluminium prices in total in 2016, but also prizeincreases in H1; ratio drops to 55.2%.

LME (in EUR) downward trend since 2nd half of2015 has ended. Price increases started inautumn.

Personnel expenses (+15.2%) are impacted bystaff recruitment for new plant, ramp-up costs(mainly costs for new and still unproductive staff)and wage increases in Stalowa Wola.Recruitments also in Werdohl plant (productionoutput increases). Group employees in 2016 at2.918. Personnel cost ratio at 16.4%.

Other operating expenses (+12.1%): IPO costs in2015, higher repair and maintenance, sellingexpenses, losses from the disposal of assets, andR&D costs.

Interest expenses (-30%). Reduced interestpremium for syn loan from 2.2 % to 0.95%, butalso by IKB loan drawn in Q4.

Comment

+15.2%

-2.4%


3333

P&L: earnings and margins at record levels,

dividend raised to EUR 2.00 per share

03 FY 2016 UPDATE

Net Profit [EUR m]

EBITDA increased by 19.6% to EUR 70.2m

EBIT grows by 18.7% to EUR 52.1m

EBITDA margin improved to 15.1%, despite

ramp-up costs, wage increases and upward

LME trend.

EBIT margin up to 11.2%.

Net Profit amounts EUR 64.1m, and strongly

benefits from a non-cash income from

capitalised deferred taxes (€15.0m).

Dividend proposal increased to EUR 2.00 per

share from EUR 1.65 for 2015, payout ratio

based on net profit w/o non-cash components.

Dividend yield at over 4%.

Comment

+57.5%

EBITDA [EUR m]

+19.6%


3434

Solid financing structure – stable net debt and equity ratio

despite peak in capex programme

03 FY 2016 UPDATE

Equity ratio [%]

Scheduled repayment of term note of

syndicated loan (EUR 5.5m).

New loan agreement (IKB) amounting €20m,

with a fixed interest rate of 1.0% due in 2024,

has been fully drawn in October.

Net debt at EUR 42.5m (Sep 30: EUR 60.1m).

Net debt/EBITDA at 0.6x.

Equity ratio: 62.3% - equity mainly influenced

by net profit.

Reasonable leverage <2.0x targeted for long-

term expansion.

Comment

+0.7 PP

Net debt [EUR m]

+302%


3535

Outlook FY 2017: full new capacity and economies of scale

03 FY 2016 UPDATE

The group targets for 2017 an increase in wheel sales of between 10%

and 15%.

Group revenues are forcasted to grow between 14% and 19%, taking the

aluminium price development into account.

2017 is expected to face an ongoing demand growth from European

OEMs. We assume an average LME aluminium price of EUR 1.580 for

2017. Together with the availability of the full capacity of UPP 3,

economies of scale should be achieved.

Wheel sales increase

by 10-15%

Revenue growth

by 14-19%

We expect:

Ramp-up costs to be concluded in 2016 and economies of scale at new

plant: we expect an EBITDA growth of 15% to 20%.

EBITDA growth of

15-20%


36

FINANCIALS 12-16


04

3737

Key financial indicators 2012-2016

04 FINANCIALS 12-16

Cost ratios Earnings and Margins

Financial Position Return on Capital Employed

ROCE (Return on Capital Employed) = EBIT / (Equity + Long-term Liabilites – Cash)


3838

Key Financials 2012-2016

04 FINANCIALS 12-16


3939

P/L 2012-2016: growing revenue and margins improvement

UNIWHEELS GROUP Q1 2015 RESULTS

04 FINANCIALS 12-16

Consolidated P&L of UNIWHEELS Group

2012 2013 2014 2015 2016

in EUR m Actual Actual Actual Actual Actual

Revenue 318.0 337.2 362.6 436.5 464.1

Changes in inventories and work in progress -3.6 1.8 7.7 1.5 -4.3

Own work capitalized 0.4 0.5 0.6 0.6 1.3

Total operating performance 314.8 339.4 370.8 438.5 461.1

Cost of material 203.4 211.1 219.7 262.4 256.0

Gross profit 111.4 128.3 151.1 176.1 256.0

Other operating income 13.1 4.9 3.5 4.6 3.9

Personnel expenses 57.1 54.2 57.6 66.0 76.0

Other expenses 44.4 40.7 51.2 56.0 62.8

EBITDA 23.0 38.3 45.9 58.7 70.2

Depreciation, amortization and impairments 12.9 14.7 14.2 14.8 18.1

EBIT 10.1 23.6 31.7 43.9 52.1

Interest income 0.9 0.3 0.6 0.5 0.2

Interest expense 12.4 10.8 10.7 4.4 3.1

Other finance revenue/costs 9.4 -3.4 0.8 0.7 1.3

Profit or loss before tax 8.1 9.7 22.3 40.7 50.5

Income taxes -4.9 -3.6 -0.5 0.0 -13.6

Net profit or loss 13.0 13.2 22.8 40.7 64.1

EBITDA margin = EBITDA/Revenues, EBIT margin = EBIT/Revenues

Key margins 2012 2013 2014 2015 2016

EBITDA margin 7.3% 11.3% 12.6% 13.4% 15.1%

EBIT margin 3.2% 6.9% 9.0% 10.4% 11.2%


40

THANK YOU FOR

YOUR ATTENTIONIR Contact:

Oliver Madsen

Head of Investor Relations

+49 (0) 63 22 / 9899 – 6209

[email protected]

41

APPENDIX


05

4242

Consolidated statement of cash flows

05 APPENDIX


4343

Key Financial Figures FY 2016

05 APPENDIX


4444

Key Financial Figures FY 2015

05 APPENDIX


4545

Risk management: raw materials, F/X, prices, interest

05 APPENDIX

Hedging Instruments

Hedging Transaction on Aluminium

Price adjustments clause:

Contracts with car manufacturers for quarterly price indexation

Currency Hedging: US Dollar and Polish Zloty

IRS Hedging (Syndicated loan)

To ensure that changing aluminium prices do not impact Group’s margin,

contracts with car manufacturers provide for quarterly price indexation.

There are also certain arrangements with the OEMs that allow to

decrease impact of the cost volatility.

Furthermore, the Group enters into swap agreements with banks to hedge

itself against the risk of fluctuating aluminium costs.

The Group has chosen the Euro as its functional currency, also for UPP

Costs for the salaries of its employees, energy costs and transport costs

are however incurred in Polish Zloty. Raw materials are paid in Euro. The

Group is exposed to exchange rate fluctuations between the Euro and the

USD on the one side and Polish Zloty on the other side. These

fluctuations are hedged by forward hedging contracts to mitigate the risks

involved

F/X: 2017: fully hedged, 2018: about 20% hedged, both years at a

favourable currency rate

The Group uses Interest swaps to minimize the risk of rising interest

rates. In an interest swap the Group exchanges fixed and floating interest

payments that were calculated on the basis of agreed nominal amounts.

Main Hedging Instruments Comments


4646

Analyst Coverage, Estimates and Recommendations


Institution Analyst DateEBITDA

FY2017 e

Target

PriceRecommendation

BZ WBK Brokerage Michał Sopiel February 6, 2017 € 85.7 m PLN 259.00 BUY

mBank Dom Maklerski Jakub Szkopek October 19, 2016 € 89.1m PLN 258.00 ACCUMULATE

Pekao Tomasz KucinskiDecember 19,

2016€ 88.4m PLN 249,30 BUY

Trigon Łukasz RudnikNovember 29,

2016€ 83.1 m PLN 249.00 BUY

Wood & Company Maciej Wardejn August 12, 2016 € 80.0 m PLN 211.50 BUY

Consensus - - € 85.3 m - -

05 APPENDIX

4747

Financial Calender 2017 & Contact

05 APPENDIX


Documents

Safe-Harbor-Statement - UNIWHEELS€¦ · and business conditions, ... services or technologies and changes ... A5, A6, A7, A8, Q2, Q3, Q7, i3 BMW-Group BMW 13 years 1-series, M5/M6-series,